Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Tom L. French who wrote (3709)	11/24/1997 7:16:00 PM
From: james paterson	Respond to of 95453

It was hard to find much optimism on this thread today, but I think I can offer a little. As far as fundamentals accouting for this big decline, I think we can agree that the only real fundamental that is hurting us is lower crude prices. Today crude was up a few cents. More importantly,there is no sign of backwardation in the futures contracts.The Dec. contract is at 19.16 while the Feb. contract is at 19.98. Still a fairly healthy premium. If the big players really expected crude to go down, that premium would have contracted much more. I feel very comfortable holding PDS. It has outperformed the index lately because of it's low pe & insulation from price declines due to the fact that they have lomg term contracts & the E/Ps have no choice but to continue drilling (because of lease commitments). James.

To: Tom L. French who wrote (3709)	11/24/1997 9:23:00 PM
From: PuddleGlum	Respond to of 95453

Tom- I own a lot of semiconductor stocks, and Fidelity began selling them about 2 1/2 years ago. What followed was a terrible blood bath that just wouldn't end. The fundamental situation may be different, with demand for the oil services possibly being more predictable and just basically stronger than the semis were 2 1/2 years ago, but the charts, news climate, and Fidelity's actions seem very comparable when comparing the two industries over the different time periods. I guess what I'm saying is that I don't expect Fidelity to jump back in any time soon. Just a note, I don't own any oil service stocks but I've been watching for awhile with dropped jaw at how much these buggers have climbed. I own one e&p stock (SFY). Steve